Author Archives: CyberLogitec

From Good to Great – Making the TOS Leap 2.0

In this 2-part series, we continue to take inspiration from the book ‘From Good To Great’ authored by Jim Collins. One of the success factors to an organization is by focusing on one area and being the best at it. On the same note, ports and terminals have to consider realigning themselves to the needs of the market. From great automation to service excellence, we attempt to discuss the importance of having great people and great partnerships facilitates the transition from good to great. The acclivity can only be achieved as the company drums up on the level of discipline to drive the business forward.

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1. Great People

People is the backbone to the success of an organisation and the maritime industry is no exception. Research indicates that high employee satisfaction rate encourages an intrinsic desire to give one’s best at work which would eventually lead to high morale and motivation. Managing Director of Drewry, Arjun Batra1, says that “human capital is more important than hard physical assets in the uncertain world of shipping, especially those professionals capable of managing vessels technically and commercially.”

Indeed, the industry faces a continuous issue of attracting a younger workforce. Bearing in mind, the traditional characteristics the industry typically displays where many are still family-owned businesses. As shipping is affected by the macro side of things, the great differentiator will have to be great human capital, people who are intrinsically driven to advance the company.

2. Great Partnerships

The true value of shipping can no longer be centred on size, but players across the industry must be better connected in order to address the existing challenges and drive growth. Over the past two years, the industry has seen a trend toward market consolidation. Container lines were merged and acquired. We see shipping alliances taking place. Terminal operators have also been seen to be partnering major shipping lines to secure volumes. Singapore terminal operator PSA has seen throughput grow 9% to reach 33.35m TEUs, a result attributed to PSA’s partnering with French ocean carrier CMA CGM.

The expanding size of ships are a positive factor for ports because they have the capacity to handle mega ships, whilst smaller neighbouring terminals can potentially partner to meet the demands of shipping alliances through merger and acquisition activities. 

Guiding a company from good to great demands intense discipline and dedication in its drive towards terminal excellence. Companies should exist beyond just mere profit-making company. Instead, companies can be passionate for a higher purpose driven to produce tangible positive outcomes for the company and the industry at large. There is indeed, a premium tag for first movers who are determined to be a change agent and be the ones who set the standards, that will establish great terminal operations.


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https://lloydslist.maritimeintelligence.informa.com/LL1123021/The-Interview-Arjun-Batra

From Good to Great – Making the TOS Leap 1.0

Ports play a major maritime role in a country’s economic development. The terminal industry therefore has to end its divisive nature and embrace a more collaborative view of things in order to be successful.

In the book ‘From Good To Great’ authored by Jim Collins, it is suggested that one of the keys to success in any organization is by identifying a single area where they can be best at, and to focus on being the best in that area. The book explains that the move from good to great is achieved by the level of discipline the company maintains in its business in order for it to thrive and be sustainable in the long run.

Likewise, the success of a terminal can be measured with a few key factors in mind, such as the ability to leverage advanced technology, and nurturing the human capital that contributes to the growth of the industry. So terminals who desire to move from good to great must understand the requirements to shift from long-term mediocrity to becoming a port of excellence.

Here are two ways to identify a great and thriving terminal.

  1. Great Automation

The rise of globalization has led to an increase in International Seaborne Trade which has in turn led to a rise in port operations. To improve operational efficiency at the ports, operators have also started recognizing the need to automate their operations to support the increase in demand of trade. A great terminal will engage in advanced connected systems that provide flexibility and visibility across its port and terminal network. When information and data is gathered in real-time, decisions can be made quickly to effectively manage the yard performance of the terminals. Automated equipment handling is also leveraging advanced technology to provide improved performance, safety and control.

Technology has a way of improving efficiency and differentiating terminals from competition. And it will work best if standardization takes place and processes are well aligned with business goals. On a larger scale, standardization of workflows and processes cut away complexities and streamline processes to smoothen operations.   

  1. Great Service Excellence

Shippers and forwarders are always on the lookout for flexible and available booking options. Delivering great service means that businesses should be responsive to the needs of the client as well as provide consistent and good quality service. One key indicator that delivery service hasn’t been up to mark, is poor documentation, which leads to slow response to customer’s queries. Ship management firms can offer tailored services that enhances communications with owners and to build mutual trust.

Organizational initiatives need to be in place to boost the service quality for the industry to see an improvement in quality. One of the ways to address this, as the book suggests, is to empower and motivate its people so that collectively, they will be driven by an unrelenting sense of determination to improve its service delivery.

As companies make decisions and take meaningful steps to affirm their core competencies, they inevitably kickstart a positive momentum that can lead to greatness.

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Driving Innovation at the Inaugural CyberLogitec Summit 2018

CyberLogitec held its first Summit last week, hosting more than 35 international customers, guests, partners and friends. The event is testament of our strong competencies in business consultation and execution of our solutions. We place strong emphasis in customer service and integrity as our key values that will bring success and sustainability to our business.

According to the International Maritime Organization, over 90% of the world’s trade is still carried by sea and this has contributed to a cautious approach on global port capacity expansion, even though the outlook for container demand is now at an optimistic 4% per annum for the next five years.
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Kicking off the event, was Mr Jason Hyeon, Executive Vice-President, CyberLogitec. Appreciating every customer in attendance, he shared that this event inks the promises we adopt over our technologies and our brand values over the past 20 years. CyberLogitec have been positioning ourselves as positive contributors to the market by developing innovations and technologies to help businesses stay ahead in the market. With all these in mind, businesses need to remain nimble by taking time to review and realign business processes to stay afloat.  

At the event, guests were able to gain a deeper understanding of the market trends and the importance of embracing innovation that is designed to provide greater operational efficiency.

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Dr Tae-II Kim, from the Korean Maritime Institute, shared with the audience KMI’s insights on the 4th Industrial Revolution and its impact on the maritime industry. Citing examples from CMA-CGM and Maersk, who have been positioning themselves to embrace blockchain technologies, many other companies preferred to observe by the sidelines.  One of the digital trends he identified for the maritime industry, was the move of automation and technology. As businesses place priority in the investment of technologies, they can then begin to appreciate how big data and smart algorithms do well to provide key information to facilitate decision making.  Also importantly highlighted was the increasing trend for M&As, collaboration and the need for e-platforms.

Head of Business Consulting, CyberLogitec, Mr Wai Mung Low, shared that seaborne trade is still on a slow, upward trajectory. With the acceleration in globalization and the increase in the volume of trade brought on by mega-sized vessels, businesses must therefore harness technologies and solutions that can power the daily operations and cooperate efficiently through a collaborative ecosystem platform in order to optimize their informational exchanges between partnering carriers.
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With the influx of mega-sized vessels on long-haul trade lanes, the cascading effect to smaller ports brings forth the need for regional and domestic terminals to recognize the need to put in place well-automated, cost-effective and versatile terminal solutions that can tailors to multi-terminals management & mixed-cargo handling of containerized & non-containerized general breakbulk readily. The necessity for an advanced multi-purpose TOS is thus inevitable.

A classic illustration of automation and digitalization, is where large IT infrastructures of ONE engages with high performance platforms to manage massive data exchanges conducted onboard ships and in office. As shared by Mr Kosuke Wade, Senior Vice-President of Ocean Network Express (ONE), it was determined early on that ONE would adopt one of CyberLogitec’s flagship products, OPUS Container, covering key containership operations. Selected also for its scalability and ability to integrate with other key platforms for greater optimization, he shared that it was a necessity for ONE to change and ride with the current business trend in order for them to survive in the constantly evolving business landscape.

As the industry arrives at the inflection point, the value of information is far greater than before. Inbuilt intelligent algorithms help personnel plan, schedule and forecast operational requirements of vessels, yard and container equipment in a smart and optimized way. This is where delivering service excellence becomes a key differentiator for the maritime business.

Advancing innovation has always been one of CyberLogitec’s core values, leveraging on our extensive industry experience and strategic market presence to meet the dynamic needs of the market. The only way to progress is to move forward and the inaugural event inks the commitment we have in delivering strong products and quality service to our customers.

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How Far Have We Sailed?

It comes with no surprise that digital transformation is slowly but surely, changing the maritime game. Every industry in fact, has in one way or another been affected by it. The reality is, change is the only constant. Whether we like it or not, innovation is picking up speed, and we need to remain poised for a future where logistics and ocean supply chain are transformed by new technological advancements.

Take Singapore for example. Today the nation is a shipping hub for maritime business, renowned for its port facilities, ship repairs and newbuilds. PSA was founded in 1819 and by 1982, Singapore became the world’s busiest port, achieving one million TEUs per year for the first time.  As Singapore continues to aggressively innovate, PSA now handles 74 million TEUs at its port projects around the world, with its flagship Singapore Terminals contributing to 33 million TEUs. Just this year, CMA CGM’s Ze Box and PSA unboXed have partnered to drive digitalization and innovation in the shipping and supply chain ecosystem through a series of programs. Innovation and even collaborative partnerships do well to harness an acceleration of growth and efficiency.

So exactly how far have we sailed?

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Throughout the world, equipment manufacturers, ship operators, freight forwarders, software technology companies are already on projects in the hope of realising operational productivity and improved customer experience through digital innovation. The Port of Rotterdam’s port call optimisation platform, Pronto, developed with Dutch startup Teqplay, has allowed vessel operators to cut waiting times at the port by up to 20%, for example. London-based CargoMate has developed a platform that helps containerships minimise delays in port, allowing them to sail slower and save fuel.  

In the same way, having a holistic view of data sources, where it is collated, exchanged, shared and analysed also plays a key role in being a positive contributor to the market and ensuring the business remains nimble. That is one of the ways to remain competitive, delivering quality service efficiently. There are needs for standardization and collaboration so collectively the ecosystem of liners and carriers can leverage on information to make right business decisions.

In today’s standards, without that level of connectivity nor transparency, we will not see an advanced ocean supply chain trajectory. For the industry to sail full steam ahead, we must remain poised for the future in order to see growth and efficiency in the ocean supply chain.

 

Container Ports: 2 Ways To Fast Track Transformational Change

What shippers really want to know the timeliness of the vessel’s arrival, that the port will have allocated delivery trucks and cranes ready to service them at berth. They need the port to be flexible to manage their transhipment requirements, and re-organise  cargo in response to unanticipated circumstances. They also need ports to be proactive with solutions such as automated regulatory clearance for their cargo.

For container ports and terminals thinking digitalization for added capabilities and agility, here are two good kickstart moves:

  1. Set Your Standards Right

Before digitization can happen, there must be standardization. As Maritime Research and Advisory firm Drewry puts it, “Technology innovation can only work when you have standardization.” That means defining the specific requirements for each function and procedures for every process throughout the value chain. When companies begin to standardize your workflows and processes, you cut complexities and clear the way for ideas that can lead to new ways of doing business.

On a larger scale, standardization also gives ports the basis for information sharing, and facilitating trade and integration within the organization and throughout the value chain. In short, setting the right standards help companies connect and collaborate better, which is essentially the heart of digitization itself – people, machines and processes working seamlessly to drive business goals and benefits for safety, efficiency and the environment.

  1. Build Transformative Partnerships

One of the most important elements of success in this digital economy is a company’s ability to build partnerships for sustainable growth. “We’re seeing organizations in the port space—authorities, operators, service providers, third-party logistics companies, and forwarders—doing more and more to improve the end-to-end supply chain.” McKinsey & Company[1]
The digital economy is the sharing economy. Sharing information and sharing strengths to gain a bigger business advantage. Some shipping lines have already been doing it, where new models of cohesiveness are borne. In collaborative shipping, multiple shippers bundle cargos into one vessel on the same route. This results in higher fill rates, reduced transportation costs overall and, it’s simply a greener way to go.

“Global trade is growing, albeit slowly. More terminals are shifting to automated systems in the first steps to digitization,” says Mr Lee Youn-Kuen, Managing Director, CyberLogitec Global Pte Ltd. “True effectiveness entails a cohesive platform that can tightly integrate disparate equipment and systems at the terminal. Advanced solutions such as OPUS Terminal offers port operators a highly integrated TOS platform that provides visibility and coverage of the port. This facilitates pro-active decision making so that operations can work productively,” he adds.

On the port level, two main terminals in the port of Hong Kong[2] ‑ Hutchison Port Holdings (HPH) Trust and Cosco Shipping Ports (CSP) – have consolidated their operations to form the Combined Terminals creating additional capacity, increasing flexibility in berth and yard planning. Terminal operators are also joining hands with major shipping lines. Singapore terminal operator PSA has seen throughput grow 9%[3] to reach 33.35m TEUs, a result attributed to PSA’s partnering with French ocean carrier CMA CGM.

New alliances can also be formed with knowledge experts outside the industry. In 2017, shipping giant Maersk and IBM unveiled the world’s first block chain digital solution for shipping. The ground-breaking platform caters to the multifarious needs of shippers, freight forwarders, ocean carriers, ports and customs authorities. It is poised to help users “manage and track the paper trail of tens of millions of shipping containers across the world by digitizing the supply chain process from end-to-end to enhance transparency and the highly secure sharing of information among trading partners.[4]” IBM reckons, when adopted at scale, this vast digital ecosystem will help the industry save billions.

For container ports and terminals operating in today’s tumultuous shipping industry landscape, the customer is king. To attract shippers and lines, ports need to acquire new capabilities and agilities fast, to differentiate themselves from competition and to stay in the game.

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[1] Ports and Shipping: The Need for Solutions That Cross Lines, McKinsey & Company (May 2017); https://www.mckinsey.com/industries/travel-transport-and-logistics/our-insights/ports-and-shipping-the-need-for-solutions-that-cross-lines

[2] Source: Sea Trade Maritime News, 20 December 2016; HPH Trust, Cosco Shipping Ports tie up HK container terminal ops http://www.seatrade-maritime.com/news/asia/hph-trust-cosco-shipping-ports-tie-up-hk-container-terminal-ops.html

[3] Source: “PSA reaps rewards of partnerships with container lines at Singapore port” by Gavin van Marle, 17 January 2018; https://theloadstar.co.uk/psa-reaps-reward-partnerships-container-lines-singapore-port/

[4]Source: IBM Press Release, 5 May 2017; Maersk and IBM Unveil First Industry-Wide Cross-Border Supply Chain Solution on Block Chain, 5 May 2017; https://www-03.ibm.com/press/us/en/pressrelease/51712.wss;

The Balance of Globalisation and Collaboration

The Research & Markets’ “Global Ports and Terminal Operations Market 2017 – 2021” report states that ‘The ports and terminal operations market in APAC is expected to handle 477.42 million TEU by 2021.’ This is a forecast growth of 4% since 2016. Indeed, 14 of the top 20 busiest ports in the world are in China, one of the top manufacturers of electronic goods. China’s continued dominance in this field, coupled with the rise in foreign investments into emerging markets like Myanmar, Vietnam and India are key factors in the growth of the APAC region. It also has been forecast that terminals in Greater China could register the most substantial increase in average utilization levels, reaching a rate 96% by 2021.

This indicates that seaborne trade is still on an upward trajectory, albeit a slow one, and with the acceleration in globalization, the success of terminals will be tested as they strive to cope with the demand for increased utilisation rates.

Today, a massive amount of resources is wasted as a result of inefficient manual processes. In the process of cargo movement, information about its whereabouts is handled by various disparate software systems that are not always well-synchronised. This results in stakeholders being forced to make decisions while lacking crucial pieces of data, and visibility into the supply chain.

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On the bright side, however, with technology, there are ways to standardise data flow. Improved collaboration between terminal operators and carriers could allow all stakeholders to benefit from the information. Over the last 5 years or so, we have seen and heard of many digital programmes being applied in different companies. These early adopters are capable of changing and setting the standards. Standardisation is now a need and it must take place in order to bring about change and collaboration. Having a single platform allows inclusive collaboration such as slot swaps, co-partnerships and liner alliances, where a wide range of information can be shared and made visible to streamline business processes.

Trust is a required element for collaboration to take place. The ability to share information such as slot exchange forms part of data that needs to be shared in order to collaborate effectively. A well-automated terminal can deliver high performance throughout the day because these solutions can communicate efficiently between shipping lines and terminal operators.

Maritime transport is the backbone of globalisation and trade, so it is key that companies critically assess their current systems taking into consideration the level of accuracy and speed at which they operate, and adopt a robust, innovative technology strategy to deliver sustainable success. To stay ahead in the game now and in the future, improved transparency and visibility via a shared partner ecosystem and the adoption of innovative technologies is vital.

Driving New Frontiers 2.0

Smart Business Goals

Within the terminal supply chain, there are many stakeholders involved in delivering end-to-end service to customers. In the world of larger ports and bigger ships, a flexible and modular-based TOS architecture understands that multi-terminal and mix-cargo terminal operations have different complexities, which means there isn’t a one-size-fits-all system. Whether deployed on premise or on the cloud, with plenty of features useful to cater to the needs of the multi-terminal or mix-cargo requirements, the operating system becomes an important part of powering the daily operations of the terminal.

Operational processes are fast becoming more complex and it is challenging us to take a hard look at the status quo of the maritime supply chain. It is therefore time to harness technologies to effectively unlock greater performance for the port and better service delivery for end customers. Smart ports can therefore visualize a new era, restoring port productivity to the industry.

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Driving New Frontiers 1.0

The ocean container shipping industry is facing many issues, with weak demands and oversupply of slots. The truth is terminals can visualize a new era, restoring port productivity to the industry. To remain competitive, a good terminal operating system (TOS) should be optimized for the future as it grows with the business.

Smart planning

Under a single umbrella, a good TOS will be a well-connected platform with a single real-time visibility with solutions that come with clear 3D and 2D yard views to facilitate decision making. This gives rich graphical details within a single interface as terminal crew can quickly zoom in and out of the yard providing yard container information and vessel discharging activities thus elevating visibility.

Smart operations

To power a smart port into the future, having a global pooling system that is well-managed by an intelligent TOS eliminates the complexities of juggling the equipment manually. By managing its resources and equipment, it discharges its plan based on an intelligent algorithm that considers the Internal Terminal Vehicle (ITV) workload and the yard movement sequence in real time. By assigning the closest ITV to its targeted container, it maximizes operational efficiency as time and cost savings are key metrics for a productive port.

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Change Is Here To Stay

Change Is Here To Stay

The old paradigm of change was applying technology to automate simple processes and operations, but today’s wave of change has gone beyond that. It is now about leveraging on the Internet of Things (IoT) and Big Data to collect intelligent data generated by multiple processes, and support change management at a higher level.

Big Data is an integral part of ALLEGRO’s yield management process as it maximizes profitability by validating pricing, capacity and cargo type each time a booking is created. This allows for real time revenue management and improved business decision making. The adoption of the right technology is about understanding that change is inevitable in order for businesses to remain relevant.

One of the key factors of change, is about realizing new innovation can power businesses to be productive.

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Having the Right Mindset

The truth is, no new technologies are without drawbacks. There is always a learning curve, and that unlearning of the old and relearning of new processes and systems. Understandably, legacy systems and old working habits are hard to let go, but to embrace new processes a flexible mentality must be adopted for organisations to stay relevant. Workers need to upgrade their skills and gain the confidence to thrive in such a competitive world. It is important not to succumb to fear but maintain an optimistic stance, keep up with the times and prepare for the inevitable disruption.

The maritime industry is not immune to the opportunity of technological advancements. In fact, companies should be leveraging on the downtime to take action now. Deep transformation is needed, starting with change management practices through to the adoption of new technological platforms to drive innovation and thrive, not just survive, in the global market of tomorrow.

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Is the Slow Adoption of Technology in the Maritime Industry Making Us Vulnerable?

Paper maps, charts and atlases have all but disappeared in the face of the advanced satellite-based navigation systems which have become a permanent fixture on our mobile phones. Using GPS to guide us from one point to another has become such a normal way of life for most consumers, that without it, they are lost – figuratively and literally! Technology has infiltrated and disrupted our lives to the point where we are left with no other option but to embrace it.

In spite of this widespread technological disruption into our personal lives, many maritime and logistics companies are still using pen and paper, and software tools developed 30 years ago to handle their planning. We see many struggle to keep up with the service demands of their customers. Yet many others have gone ahead to adopt technologies like CyberLogitec’s OPUS Container, now known as ALLEGRO, to unify their operations to improve data visibility.

ALLEGRO uses intelligent algorithms to generate sophisticated container activity plans in order to dynamically respond to yard operations. This goes go far beyond managing the basic physical movement of containers. To manage the massive volume of data created, and efficiently manage the process dependencies arising from the transportation of a container from point to point, we need advanced, smart software solutions.  

The question therefore, is not whether it is too late to adopt new technologies. With productivity as a key organizational benchmark, the topic at hand should be how companies can leverage on technologies to remain relevant and competitive in the everchanging market. Companies need to reevaluate the importance of technologies and how it can benefit their business.  
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